LME copper eases on strong demand concerns

Print this page Posted on : 11-13-2009 by recycleinme.com

London, Nov. 12

Copper eased on Thursday on increased demand concerns after London stock levels broke through the 400,000-tonne level, but traders said the market lacked a strong direction.

By 1050 GMT, copper for three month delivery on the London Metal Exchange fell to $6,520 a tonne from $6,540 at the close on Wednesday and compared with a session low at $6,495.

LME copper stocks continued to rise, indicating demand has yet to recover outside China. The latest data climbed 4,800 tonnes to total 402,125 - the highest since late April.

Nickel inventories were above 131,730 tonnes, the highest since early 1995.

On Wednesday, copper, used in power and construction, rose two per cent before giving up gains, as factory output growth surged in China, the world's largest metals consumer.

Adding to positive sentiment on Thursday was rising euro zone industrial output numbers.

But the metals demand outlook outside China, whose stockpiling have helped lift metal prices this year, remained a worry for analysts. They said price corrections lower this quarter could not be ruled out.

Aluminium traded at $1,962 from $1,964. LME stocks in the metal, used in transport and packaging, fell 3,150 tonnes to 4.53 million tonnes to continue a recent trend downwards.

Steel making ingredient nickel traded at $16,605 from $16,850 while battery material lead was at $2,290 from $2,304.50.

Looking ahead, a volatile ride awaits the ferro-alloys industry next year when Chinese demand is set to play an increasingly vital role, delegates at the international ferro-alloys conference in Monte Carlo said.

Zinc traded at $2,184.50 a tonne from $2,184 and tin was at $14,765 from $14,725.

Source : Business Line